US Dollar Index Analysis 17/10/14

FX:USDOLLAR   Dow Jones FXCM Dollar Index
73 5 1
Long term trend: Up
Medium term trend: Up
Significant Levels: Horizontal Resistance (11010), Horizontal Support (10880)

US Dollar             strength is so strong that it cannot maintain its momentum. As what I'm always saying, a strong move cannot be maintained for an extended period of time. Though USD is moving down, we are still Bullish here. Retracements are normal. Traders/investors are just taking their profits. That's why the USD is going down for now. This is also supported by the weak data from US. Again, although this is the case, we are still Bullish here. This index might still go down to the support level or the 0.618 Fibonacci level.

Use this information to trade currency pairs that has USD in it. This index is highly correlated to EUR/USD             pair because USD Index is composed mostly of EUR, so you might want to start with that.

Trade well.
I got it. Thanks for the quick reply.
No worries.

I am sorry for asking this, but why the Fibonacci extension is taken from top to bottom if the chart is on uptrend?

Thanks for sharing your knowledge.
That's a good question actually. Many are confused with this. With regards to drawing Fibonacci Retracement, it is true that many are teaching to draw it the other way around (as to opposite of what I've done). But for you to try out, you can draw it the other way and the way I drew it. The lines will just be the same. The 0.382 level would be the 0.618 level and vice versa. It will just depend on your interpretation, but both are basically the same. The lines are the important ones and not the numbers. Though, these two levels that I mentioned (and the 50% retracement), are what I think are the important lines. And these would just be the same either way. Try it out. I hope that that answered your question. Thanks.
Investor.Unity Investor.Unity
And by the way, this is a Fibonacci Retracement and not Fib Extension
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out